Hey Scotty, yup I use Paintshop Pro 9 (I just don't have the bucks for PhotoShop) and the resizing is pretty simple, you just go to Image >>> Resize and than enter the size (in pixels that you want), but it is easier if you wait for resizing till all the rest is done.
So what is the "rest", you ask, well after selecting a nice image you want, you add a new layer for the text (actually I make a new layer for every line of text, so that I can slide and rearange them as much as I want), if you are satisfied with the badge, you merge all the layers into one, after this you can't change anything anymore on the design and than you resize to the size you want it to be.
About the waterline model, yes, they are easier to display, however in this particular case I would choose this option because there is a huge fault on the bottom of the hull (I suspect that's the reason the previous owner hadn't even started the kit). The mold for the hull is obviously a three-part mold, but the bottom part isn't aligned properly with the other two molds, the result is that a big area of the bottom is lower (if the hull is held inverted that is) than the rest of it (am I making any sense ? A picture will be better of course, so that will follow). Fixing this is possible but would require a lot of work and energy. So, I'm still not entirely sure what road I'll go.
However, Sunday there is a model event that will have lots of stands, and I'm pretty sure I won't be able to resist temptation (haha, beginning of the month, the wallet is still full :D) if I see a nice model, so that might even be a nice little AC which would replace good old monsieur Charles in this GB :)